Travel stocks sink after thousands of flights grounded

Airline and travel stocks slipped Monday after airspace closures throughout the Middle East forced carriers to cancel thousands of flights, disrupting trips as far as Brazil and the Philippines.

Shares of hotel chains fell, with Marriott International‘s and Hilton Worldwide Holdings‘ stocks down. And cruise lines were also lower, with Royal Caribbean Cruises stock off 6% and Carnival Corp. falling 7%.

Norwegian Cruise Line Holdings‘ stock was down 5% in morning trading after its CEO said on an earnings call Monday that it is 51% hedged for its fuel costs this year and 27% for next year.

Oil prices also spiked, potentially driving up airlines’ biggest cost after labor. Flights through the Middle East were grounded, including to destinations like Tel Aviv and Dubai.

United Airlines, which has the most international exposure of the U.S. carriers, was down more than 4% in morning trading. Service to Tel Aviv, Israel, one of the airline’s most profitable routes, was halted, but airlines were also was forced to pause flights to Dubai, in the United Arab Emirates, one of the busiest airport hubs in the world. Dubai is also a home base for the airline Emirates.

Shares American Airlines were off about 5% while Delta Air Lines was down 3%.

Another 1,560 flights were canceled in the Middle East on Monday, aviation data firm Cirium said.

Other carriers’ stocks had more muted drops. Shares of Southwest Airlines, which is more U.S.-focused, were down less than 1%.

International travel has been a bright spot in the travel sector. In January, international air travel demand jumped 5.9% from a year ago while domestic flight demand was nearly flat, the International Air Transport Association, an airline industry group, said in a report Monday.

— CNBC’s Contessa Brewer contributed to this report.